>> down over 16 bucks. this may be a bernanke dollar play. [closing bell rings] david: pure, pure bernanke play. peltz are ringing on wall street dow jones industrials, once again, second day in a row, triple digits on the dow. it has been up much more than it was. 139 points, a big jump before a fed meeting. so is the nasdaq. the russell 2000, by the way, i believe, producers correct me if i'm wrong, this is all-time high -@on the russell, is that not right? all-time high, just shy of 1,000, liz. liz: the biggest percentage gainer. here are the front page headlines. it raised its stake in sony adding more fuel to the campaign on behalf of third point to persuade the company to spin off its entertainment division. sony said it will review the firm's proposal.

they're pretty much acting like activist investors here. sony repeating previous statements that the division is not for sale. david: u.s. consumer prices ticked up in may. the labor department rose the consumer price index rose .1%. driven by higher rents, air fares and energy costs. liz: president obama suggesting that fed chief ben bernanke will most likely leave when his term end in 2014. in an interview the president said the fed chairman already stayed a lot longer than he wanted or was supposed to. david: they pulled back a little on that today. sprint meanwhile filed a lawsuit against dish network and clearwire in an effort to block dish's offer for clearwire. sprint which is clearwire's majority owner said dish's offer violates corporate law. >> fight is on that one. chrysler says it resolved differences with the national highway traffic safety administration on the jeep recall request. the company will conduct a voluntary campaign with regards to the cars in question and provide upgrades to the rear

structure of the jeep if necessary. david: starbucks, remember them this they will begin posting their calorie counts on menu board nationwide beginning next week the move is in part anyway to get out ahead of federal menu labeling requirements, expected to go into effect later this year. a big day on the dow and all the markets. @after the bell" starts right @ow. liz: get to today's action. so glad you're joining us. @e have edward pavin, who says, forget the fed when it comes to making investment decisions. larry shoafer in the pits of the cme. larry it looks like people believe the fed will say down tte road we'll taper the bond buying program but for now, not so much. >> you're probably right. the market's gaze is clearly focused on the fomc.

we need to remember a lot has broken down. narrative whereeqe is good and taper something bad, that is disconnected and broken down and eroded over the past six weeks of the keep this in mind. this has been on the table for six weeks. the stock market has been in a very, very broad but comfortable range. look at treasurys and gold. that is not pointing toward a doveish fed. however the stock market seems to be accepting the fact we might have some tapering toward the end of the year, and that is okay. david: edward, you like what bernanke is doing but you see the risks of this policy and even some people bullish on bernanke inside the fed do. we're starting to see synthetic cdos again, other financial instruments that partially led us into the crisis last time. >> first of all, thanks, liz and david, for having me on. david: it's a pleasure. >> whole concept of easy money needs to end sometime in the near future.

these synthetic cdos or exotic instruments are quite scary. the fact they're coming back in "vogue" is telling to me. i view this whole fear around tapering is somewhat misguided precisely if you go back to some of the old transcripts chairman bernanke did say we would need to see a more sustainable real improvement in the economy before we saw any reduction in his quantitative easing. if we look at recent economic data, ism manufacturing, with a reading below 50 to me, that's not necessarily an improvement in the overall economy. i think we can look through the announcement tomorrow. it will be hard. there will be some volatility. by and large i think it is more an issue of 2014. liz: but, edward, is it fair to say you wouldn't necessarily change your investment strategy on what the fed will or won't do? >> that's correct. we're a bottom-up stock-pickers. we're looking at individual securities that kind of have a technical profile that is attractive to us, a fundamental

profile that is attractive to us. we may take advantage of some of the short term volatility trimming winners and taking advantage of some of the weakness. by and large we're looking over next 12 to eight teen months and think this is another ssdeshow. david: let me follow up on that and what liz was saying. what if bernanke says what the market really doesn't want to hear? the economy is going great guns or not great guns but it's doing fine. we're really able to pull back, wouldn't that make you change your allocation as little bit, edward? >> well, it is funny, dave. if you look at the fed fund rate, the futures, the market is already pricing in some sort of a tightening in the summer of 2014. if you look back two months, no one was even thinking about the fact that the fed would tighten. and now with the fed fund rate you're starting to see some tightening being priced into the market. i think a lot of heavy lifting and the fact the yields on bonds backed up 50 basis points already in six weeks, a lot of

the expectations of this taper having already been priced in. that's why i think a lot of this fear is somewhat misguided. liz: let's go back to larry because we know the pits, i was joking with doreen mogavera at the new york stock exchange, are you going to put on your football pads for all the action tomorrow. but what is it you expect? if we know there is not any move and they will not tighten rates for sure, 99.9% for sure, what do you expect the moves will be in the market? >> well, we'll continue to have some broad and volatile moves but a lot of it depend on clarity we receive from ben. is i going to talk about tapering versus tightening? that is a vast difference of the will he promise he won't sell any of his balance sheet? will he keep reserve pledge and if that communicates tomorrow, we'll continue to ratchet higher a lot more like we did today, but the whole drama will be out of the market and we'll continue

to drive toward fundamentals in the marketplace. david: with all this indecision, edward, there are still picks that you think will work because of the way the economy is evolving. we continue to see see involving of technology, of the way people pay for things. that is why you're betting on visa. geoff us a more of fill in there? >> visa is a play on continued migration of consumption from cash and check over to merchants and to online buying and electronic buying. visa has about 22% of pce that grows about one or 2% a year. they continue to take market share. this is a name growing earnings in excess of 20% trading a peg ratio below one which is something we really spend a lot of time on the valuation perspective. david: ed and larry, hold in for a second. we have earnings coming in. we haven't had those in couple days, from adobe. jo ling kent with details. go ahead. >> earnings from adobe just came

out and we have earnings per share of 36 cents which is a beat of estimated 33 cents. estimate is $1.1 billion, right on target. they announced 100 million digital downloads in just over two years. this company is trying to move away from its software products and go into the cloud. on that note their cloud subscriptions grew 25% in the second quarter, bringing in $230 million, david. liz: they're on to the creative cloud adoption, definitely. larry, as you look at the company for the past eight quarters they have actually beaten. they have done extraordinarily well but they have seen while they're profitable they have seen net income slip over the past four quarters. as you look at a name certainly among the best in class in what it does, what do you say? it is jumping higher in the after-market session which is certainly great for adobe? >> yeah. all i can say is stunning. my hats are off to management.

we don't realize how hard it is to switch from software sold in a box company, to a subscription-based company. then management goes one step further and creates 135,000 new subscriptions on the creative franchise in the first quarter. all these things spell great things for the company especially at love people looked the other way when they thought of like microsoft, they weren't able to get it done. adobe got it done and -- liz: apple tried to kill it. steve jobs did not pick adobe for several reasons. >> that's right. liz: adobe flash. in fact picked html. in the end adobe lives and is alive and kicking into absolutely. i they management has done a wonderful job. you buy the stock because of the management. that is the biggest thing most people don't look at. they're doing a stunning job. maybe some is luck or being in the right place at the right time. make no mistake about it, they have done something many were

not able to do. david: edward, one more question before we go, a final question what happens tomorrow. we've been trading sideways now for a couple weeks, at least if not solidly for one week. will that change tomorrow? will we see a clear direction either upward or downwards? >> david, think trading range will continue for some time. make its sound somewhat hedgegy and cagey but i think it will stay intact because the multiple expansion that we've seen over the ccurse of the last six months i think will be somewhat capped. we'll need to start seeing earnings improvement, some earnings reacceleration in the back half of this year to get continued stock prices higher. david: ed said, this is a sidewinder market. that is what we have here it will be that for a while. liz: thanks to both of you. let me mention i'm doing some prospecting on adobe. biggest shareholders, vanguard with 22 million shares. state street, blackrock, they're

in the money because the stock is jumping in the after-market session. david: money managers pulled almost $9 billion out of emerging markets last week. they posted their fifth straight week of losses. however we have a strategist who says, don't follow the herd. this is the perfect buying opportunity. he will tell us why. liz: the controversial nsa data gathering program? well listen to this, that very prograa may have thwart ad bomb plot to blow up the new york stock exchange. we're going to get you details on that. we want to hear from you, the president making comments suggesting this may be fed chairman ben bernanke's last term. he was appointed by president bush. years later do you think bernanke has done a good job and why do you think? log on to facebook.com/afterthebell. and give us your comments. ♪

[ male announcer] surprise -- you're having triplets. [ babies crying ] surprise - your house wasuilt an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmissi. [ coyote howls ] how about no morsurprises? now you can get all the onli trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common s. from td eritrade.

it's just common s. at o whatever business you're in, that's the business we're in. with premium svice like one of the st on-time delivery records and a low clai ratio, we do whatever it takes to make your business our business. od. hemises. , we are exactly 30 seconds away from the s&p futures closing. let's go back to larry shover in the pits of the cme to give as you forecast what to expect tomorrow. larry? >> well the forecast is bernanke can calm some of our nerves. however he can't address all the

nagging concerns we might v. fixed income valuation, he can't address that. he can't address some lehman-like depression or depreciation we've had in some foreign currencies. or the fact that our deficit has gotten better but we're still over $900 billion this year. these are things he has to teal with and market has to deal with. he can calm nerves tomorrow but much bigger issue to deal with going forward. daaid: it is important to remember, he is not god. he can't do everything, folks. >> exactly, thank you. david: good stufff thank you, larry. liz: i can't wait to see how sweaty larry gets tomorrow. all the tradees, they will be in the pits fighting it through. shares of krispy kreme are getting a sweep boost following a price upgrade. back to nicole petallides on the floor of the new york stock exchange. when you think of krispy kreme, you think ofs from at this doughnuts. you love it, like it, they are delicious even when you're trying to be healthy.

look at the stock, up 5% today. this is because longbow raised their price target. they put 35% upside potential for monday's close. today, it gained five percent. -- 5%. it has room to grow. a price target of 23 bucks up it closed the at $17 and change. longbow, based on what they said, they checked the channels to see growth comps for the franchises. they have been looking pretty good. as a result they raised the price target for krispy kreme. as a result you see the stock higher. back to you. liz: take a bite of that one. nicole, thank you very much. david: speaking of food, is the spice of foreign investing dulling investor pallets these days? during the week that ended june 12, mutual ffnd and etf managers pulled out $8.9 billion worth of investments in emerging markets. in the emerging markets route

just beginning or you buy them on the dip? liz: i feel like asking michael cast, baron's emerging market fund manager. you think exodus will be short-lived and the moment in time create as buying opportunity. why? >> this buying opportunity has been a big selloff. this is mean reversion in the flow of capital. what happened post-quantitative easing after crisis, a lot of liquidity capital my greating into the emerging market because of superior fundamentals. we saw overheating in the countries most recently with china, brazil and indonesia there is tightening in response to that. in order to support the currencies and in order to combat inflation. david: you throw china in the mix as though it is a equal partner of these. it's not. it is so huge. how much of the overall slowdown in emerging markets is due too3 the slowdown in china specifically because a lost these emerging markets depend directly on china?

>> it definitely is a big factor particularly in the commodity-driven countries of the as china shifts from infrastructure driven, to consumption driven economy that is causing everyone to revise down the forecast of growth of supply and demand for commodities. that is hurting countries indonesia, russia, all the heavy commodity export countries. that's hurting the currencies there as well and that is one of the things that recently set off this rout in really across all emerging markets. they're not all equal. certain countries are beneficiaries of that environment. we look for stocks all around, in all the markets and we can find opportunities justonnt. liz: so at the moment lake this really valuable for investors who are watching. you have two-tiered form of investing when it toms to the emerging markets a broader picture and narrow you are picture. start with broad. >> the broad which is introduce to we have mean reversion, a

necessary mean reversion in the flow of capital because capital became too cheap. all that money flowing into these countries drove down interest rates and cost of capital and started to overheat. it takes heat off politicians in these countries and they kind of got a free pass. they stopped driving political and economic reform which is what i want to see in these countries in essence you say go to new technology, industry concentration. we keep that up there so people see exactly what they should be looking at. >> sure. liz: in the new technology issue you feel in emerging markets there is a new opportunity there? >> this is a huge theme. the internet and the importance of that as a platform, you know as a valueecreation opportunity for many industries, in the emerging markets is more than just a technology platform. think of it as countries where you get not only transparency of prices across industry but really a social, almost a political transparency. it is countries that haven't had much of it. it's a force of democratization.

we're talk about major social change in place like china, for instance, we own the leading social network, we think that is real interesting opportunity. they're just beginning to monetize this year. wabo advertising, gaming and, e-commerce business probably did 20 million in revenue last year. will do over 100 million this year and 3 to 400 million in next few years. david: that is the total mix you have in your particular fund. >> yes. david: as you said, pointed out earlier not all the emerging market countries are not equal. >> that's right. david: you have to distinguish among them a little bert the i'm wondering based on the slowdown in some of these countries, some worse than others whether you're totally realigning proportion in your fund? >> we don't, i don't dramatically change that but certainly on margin i'm thinking that way. we will on the margin in terms of where i want to look for the

next idea we'll do that. david: are you looking for, might you change, those countries more dependent on china, for example, might youu3 pull back on some of those and those with internal growth like india for example, might you double up on that? >> we've done that. yes, certainly over the last six months to a year that's what we've been doing. we're increasing in places that are beneficiaries of this sort of softer commodity environment. that would be india, korea, taiwan, you know, and there are some that are kind of balanced where we're holding our ground in a place like indonesia. in brazil are two sides to it. parts of brazil are really prospering but parts are underperforming as well. liz: michael kass. we appreciate it. david: thanks a lot. liz: the fbi says the bomb plot to blow up the new york stock exchange was stopped flat-out using the government's controversial data-gathering program. we'll get you details on that next. really, really striking.eos are plus contrarian call,

positive housing data has investors piling into housing stocks. we have someone who says the gains have been building too fast and may be time to get out or at least pause. he will tell you exactly how to play the housing rebound. he's coming next. every parent wants the safest and healthiest products

for their family. that's why i created the honest company. i was just a concernedom, with a crazy dream. a wish that there was a company that i could rely on, that did all of the hard work for me. i'm jessica alba, and the honest company s my dam. [ male annouer ] legalzoom has helped ailli businesses successfully g started, including jessica's. launch your dream at legalzoom today. call us.e're here to help.

liz: time for a quick speed read. some of the day's other top headlines, five stories, one minute. first up, small business owners are getting more optimistic about the economy. the citibank small business pulse survey says 4 #% of owners rate -- 48%, rate conditions good or excellent. up from 43% a year ago. new car sales in the e! u falling 5.9% to a 20-year low in may. still tough there.

consult ansy firm, pwe expects medical costs to rise 6.5% in 2014 which would be down sharply from increases in recent years. it expects the economy and federal public policy to drive down costs. facebook ceo, mark3 zuckerberg is visiting south korea to meet with their president. they are expected to discuss ways to boost best activity by venture companies in the -@country. google teamed up with wal-mart and several retailers to sell the chrome book laptops. the laptops will be sold at 6600 stores. [buzzer] wal-mart, google, bringing it together, bringing it together. the fbi is bringing it together and it is scary. liz: sean joyce, a director at the fbi, testified before congress saying the controversial nsa programs helped foil a bomb plot that targeted the new york stock exchange. david: liz: joining us now with the very latest. we've been getting very

specific, very frightening information. >> we have information developing at this hour. ten homeland based threats. meaning threat were coming from the u.s., operatives here in the u.s. working with overseas terrorists. that also came up after the hearing and at the hearing. we have the head of nsa and sean joyce on tape. let's take it right now. >> in recent years these programs together with together with other intelligence protected the u.s. and our allies from terrorist threats across the globe including helping to prevent the potential terrorist events over 50 types since 9/11. >> nsa utilizing 702 authority was monitoring a known extremist in yemen. this individual was in contact with an individual in the united states named khalid owazni. he and other individuals that we identified through a fisa that the fbi applied for through the fisk, were able to detect a

nascent plotting to bomb the new york stock exchange. >> so the nascent plot. basically the law enforcement picked up the communications over the internet with an individual in yemen this is a nascent plot. this isn't, we're still trying to figure out if this is connected to the same plot last fall to bomb the new york stock exchange and also the new york fed. that was a plot that came out of bangladesh, an operative in bangladesh. it is not connected to the 2000 four plot to bomb the nyse and at that time citigroup and prudential building in newark but what we do know is what came out of the hearing today the 2009 subway bombing plot also, a u.s., started, u.s.-based plot that was in connection with an overseas terrorist operative. what came out of the hearing there is even more. the law enforcement officials testifying that they did not have a back door into servers of u.s. companies. that they had to get a court order to compel the companies to give the information that they

needed to do the metadata search to track the patterns of terrorist activity here in the united states and around the world. david: specifically again, this information is coming out so the nsa and government in general and the the f. b i have saying we need this information and these data points? >> head of homeland, excuse me the house intelligence committee, he said snowden disclosures, ed snowden disclosures, former booz allen, nsa official making the embarrassing disclosures, he called it cleanup on aisle nine. that is what intelligence community viewing his press, ita blnn they're seeing around the world trying to track terrorists here in the united states and around the globe. david: emac, thank you very much. >> sure. david: very good stuff. liz: what do sean parker, yeah, napster and bruno mars the singer have in common? they're both going electric and betting big on this. these are the electronic

cigarettes but particularly n joy is the company. see -- ceo joins us about the infusion,. david: will we see liz claman smoking? liz: i don't smoke. david: we may see her smoking, taking a puff. home build stocks have been on fire the past couple of years as the housing market shows signs of recovery. there has been a good year although there have been some dips. one analyst says don't believe the joy right now. he says it may be time to sell. hope you join us next. we want to leave you with this. remember treasury secretary jack lew took a lot of ribbing over his poor handwriting. now we know exactly what his signature will look like on the greenback. there it is. the treasury released this image. ♪ [ male announcer ] i've seen incrib things.

otherworldly things. but there are some things i've never seen before. this ge jet engine n understan 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and moreime in the air. ddenly, faraway places don't seem so...far away. ♪ summer event is here.

ow get thunmistakable thrill and the incredib rush of the mercedesenz you've always wanted. ♪ [ tirereech but you better get here fast. [ girl ] he daddy's here. here yogo, honey. ank you. [ male announcer ] because a go thing like this won't last forever. mmm. [ male announcer ] see your authorized dealefor an incredible offeon the hilarating c0 sport sedan. but hurry. offers end soo liz: time for a look at today's market drivers. stocks ending the session, just look on the ticker below us, in the green. all three major indices posting gains. today turned out to be the sixth consecutive day of 100-point plus swings for the dow. all ten s&p sectors ending the session in the green led by industrials and telecom. we had housing starts rising

6.8% in may, slightly lower than analyst expectations the increase was mostly attributed to a 25%%jump in construction of multifamily housing units. gold not doing well today. seeing red, hitting the lowest level in nearly four weeks as traders fear the fed may begin to taper its bond buying program. gold dropped $16.20 a troy ounce to end the session at 1366. david: gold is low. housing stocks are on a igh, on a tear up 50% over the last year as the housing market appears to be on the mend but our next guest is making a contrarian call. he says these stocks may have gone up too far, too fast. maybe time for them to come down a little. david goldberg,ubs housing analyst. good to see you. >>, hi, david. thanks for having me. david: prices in markets are determined by supply and demand. that's to me a better signal

when they're determined by artificial incentives. we've had so many artificial incentives in the housing markets over the past hree years, many which have not worked. are we getting back to a point where at least housing prices demand, is just a supply and demand issue? >> david that is exactly right. the recovery is concentrated in really good areas. submarkets in cities where people want to live. there is no supply in those areas so demand has ticked up. great affordability even with rates moving up what happened is there is no inventory that is giving pricing power for builders. much more price fundamentals in the market today. david: why is it a good thing that the we're getting housing back in the old determinative, supply and demand, you still think homebuilders right now have become overvalueded. why, and how much of a pullback do you expect. >> homebuilders are basing on 2015, 2016 earnings. they're betting peak levels of

deliveries, home prices, margins, kind of back to where we were in 2005. if the stocks pull back 15, 20%, we think there's a trade. potential of higher rates is a big topic of conversation. it is the summer season, end of builder selling season. i think back half of the year will be better. another 15, 20% you feel comfortable buying stocks toward the end of the year. david: 15, 20%, is significant. wouldn't that create a sense of panic in the housing market. >> it feels significant, the builders were down ten% alone after rising 20% the week before. you can get higher rates and skiddishness from investors. david: having said that, there are bargains out there or at least one you point to, beazer homes. why do you like it. >> we like beazer. they're in the middle of a company turn around. ceo took over in 2011. he had been cfo before that. worked on the balance sheet as cfo he is attacking the

operations bringing results more in line where the group is, where peers are. there is lot of earnings power in the business model people don't realize put a one-year chart back up there you don't see, when you see other housing stocks you see a direct line upward. you don't see it here. that is because of management problems they have had. >> historically. is a turn-around story. itts a great management team. ceo haa been there since 2011. he is doing a great job. takes time to materialize. david: on the other hand you have old familiar, pulte, lennar. you don't think now is the time? you would wait for a 15% pullback to buy the stocks? >> 15, 20%. david: wow. >> we could see that happen. look how quickly they tend to move. how much beta there is in the stocks. that is not a huge move in this group right now. david: let's talk about interest rates. we were kind of nervous over the past couple weeks. that led to a little nervousness in the housing market about interest rates going up. had they gone on in the direction they were going we

were facing a 5% interest rate by december in a 10-year bond. so the mortgages would have been up much more than that. how much of an effect, we had interest rates down so low for so long and housing market has done well, it's done poorly. how much of an effect to rising interest rates have on housing? >> very specifically right now not much of an effect. that is because the recovery is concentrated in really good areas. your buyers today are much more credit worthy, much more higher quality buyers than what you normally might have later in the recovery. buyer has a lot of affordability, purchasing power. higher rates don't hurt that much. they can afford more payment. when you talk to builders that is the response they get. if you look out eight teen to 24 months look where the recovery is going, as we get into the -@periphery and more buyers rats and affordability matter. the next 12 months, that doesn't matter that much. david: dave goldberg, ubs home building analyst. good to see you. >> thanks for having me,.

liz: david: did you forget your cigarettes? liz: you got them for me. what david is holding might look like a real thing but it is an electronic cigarette. the company njoy just announced it raised millions of dollars from huge names like sean parker and singer bruin mow mars. how he got people interested. 75 million is a lot of money. now the real competition begins as the big boys jump in. playing defense, a big jump in foreign demand for military equipment giving a big boost to our defense stocks. we'll break it down straight ahead. stay tuned. we're coming right back. ♪

>> i'm jo ling kent with your fox business brief. wall street rallied for the second straight day ahead of the federal reserve policy decision dde out tomoorow. the dow finished 138 points

higher at 15, 318. carl icahn now saying a major investment bank is willing to commit more than $1.5 billion to his dell buyout plan. icahn along with southeastern management have been at odds with dell founder michael dell and silver lake partners. dell and silver lake offered $24.5 billion to take the pc-maker private. >> >> would you pay to tweet up to space? a new startup is launching a website for 25 cents you can send messages to a star 17 light years away. the company aptly called, lone signal will send messages from a either station with hopes a alien might read it. that is the latest from the fox business network, giving you the power to prosper. up meeting a lot more people but

a friend under water is something compte different. you don't get that very often. it seemed like it was more than happy to have us in his home. so beautiful. avo: more trav. more options. more personal. whatever you're looking for exdia has more ways to help you find yours. liz: electronic cigarette company, now they're called e-cigs, david. that is the term. njoy, raising $75 million in funding from investors like sean

parker and singer bruno mars but big tobacco companies saying wait a minute, the little guys are doing so well with these things they're getting fired up about e-cigarettes with many launching their own brand. how does njoy plan on snowing the competition? craig weiss, ceo and president of njoy. i look at this and say, whoa, altria group is jumping in on your territory. what goes through your heart and mind? >> it is great legitimacy for the category, the fact they have come around to what we're doing for the past six or seven years. we welcome the competition. liz: you welcome, that is the right answer. amazing what the things are. let me explain to people who don't understand. inside is nicotine laced liquid when he can hailed is looks like smoke but is actually vapor droplets correct? >> yes, that's correct. we're delivering nicotine that smokers crave but without combustion and tar they're getting from combustion cigarettes. liz: this is shall i say less

bad for people's lungs i would imagine? >> the emerging scientific data from some very well-designed studies indicate there is significant harm reduction level with electronic cigarettes. at njoy we're trying to lead the way with more third party testing of our products an electronic cigarettes so we provide members public health and community at large with more certainty with respect to these products. liz: in a way it is much like the wild west because it is a brand new field. it faces nating to watch. you guys were the early entrants in all of this. suddenly you're such a leader you're getting guys like bruno mars. tell me how you got bruno mars, of course a grammy-winning singer to invest his own money in this company? >> i think that is the power of our mission, you know. was that he agrees with company's mission. we publicly stated our mission is to obsolete cigarettes. we're taking on big tobacco. we have what i think is very noble aim.

it attracts amazing celebrities like bruno mars to our cause which is really exciting. wall street is on board. fidelity and sean parker. tell me what sean's role is in all of this? he gave you some vc money, correct. >> yeah he did. sean is a really brilliant guy. i've been fortunate enough to spend time with hii. and he is obviously been very suucessful in the past identifying -- liz: napster, facebook. so he is, you know, social network genius. >> yeah. i would like to think he has been pretty good at vetting on the right, paradigm shifting changes in our society and what he, when he looks at us he gets very excited about the ability for a company like ours to really change the world for the better. that is something that gets me motivated every day. liz: you know, craig, here's one of the packets here, the njoy. looks like a cigarette packet. take a tight shot there here comes the cigarettes themselves. when you suck on them the tip actually illuminates. i will not do it because if my children saw it that would not

be a good thing. we were fooling around earlier. i don't smoke at all. immediately i felt the nicotine. smells exactly like cigarettes. this is expected to be, i heard this, the we had the ceo of blue on as well, one of your competitors, it is expected to be a 1 billion market this year jumping from 300 billion. do you believe that? >> yeah. some people like bonnie herzog from wells fargo believe it could be larger than that, $2 billion this year but growing at quite a fast pace. liz: could i quickly ask you, if altria enters the market are you worried about any anticompetitive shenanigans where they say to all of the stores, if you're carrying our cigarettes which are popular you must carry our e-cigarettes before you carry say njoy's? >> well, i'm not too worried about that in terms, those are pretty risk-averse companies, big tobacco. they have had their share of litigation. i'm sure they don't want tt face anymore of it, certainly not from a company like ours. that wouldn't be very good pr

from them. at the end of the day the consumer will decide what is the best product. we were the market leader when lorillard acquired blue a year-and-a-half ago and big tobacco entered the space and we're still the market leader today. so we feel like pretty good with our chances. >> we like the little guy so thank you, craig. >> thank you, liz. liz: craig joyce from -- craig weiss, from njoy. david: good idea but if you didn't start to smoke to begin with you wouldn't worry about any of this. u.s. arms makers are seeing a rise in demand from their products. we'll look at the companies that are profiting from all of this. liz: and will electric car owners finally be able to take a long trip without recharging or worrying where am i going to recharge next? >> we've got the answer when we take it "off the desk," straight ahead. ♪ # [ male announcer ] need help keeping your digestive balance in nc?

try align. it's the number one recommended probiotic that helps maintain digestive balance. ♪ stay in the groove with align.

david: u.s. defense companies are seeing a rise in foreign demand for fighter jets and missile defense systems as other countries modernize their armed forces. >> who is seeing a big bounce from this increased demand? jo ling kent is looking into this one. hi, jo. >> hi, liz and david. u.s. defense contractors

definitely are seeing a spike in foreign demand as we face tighter budgets here at home and other countries ramp up and modernize their forces. at paris show they said, arms sales to international buyers have doubled over past few years and further increases are expected. contractors must get defense approval before making sales to foreign countries but take a look at the current landscape. 2800 foreign military sales cases. in total all valued at $138 billion and sales are going to 100 countries. according to top contractors like raytheon, the demand is coming primarily from the middle east and asia while european defense budgets are tightening kind of like what is happening here in the u.s. raytheon ceo william swanson told reuters that his top executives are so swamped with meetings with international buyers they are literally, quote, overbooked. they're taking hundreds of meetings.

their top customers? kuwait, turkey and qatar -- qatar. looking at aerospace and defense contractors performance, 28 of 34 aae posting double-digit gains year-to-date. and companies like sikorsky aircraft run by united technologies are saying international sales will account more than half or more than half of their military aircraft revenues, certainly a big sea change, liz, david. liz: sound like it. david: remember we had the analyst touting raytheon saying it will be a big, big winner in all of this looks to being. jo ling kent, thank you very much. >> thank you. david: imagine driving your electric car if you have one an never having to worry about stopping to recharge it? believe it or not that could be just around the corner. we're going "off the desk." liz: plus we asked you on facebook and twitter whether you thought federal reserve chairman ben bernanke has done a good job so far and why. we'll read some of your answers straight ahead. ♪ we ge people a sticker d had them show us.

we learned a lot of us have known someone who's lived wl into their 90s. and that's a great thing. but even though we're living lger, one thing that hasn't changed much is the oicial retirement age. ♪ the queion is how do you make sure you have the money yoneed tonjoy a all of these years. ♪ ust your instincts to make the call. to treat my low testosterone, my doctor and went with axiron, the only underarm low t treatment. axiron can restore t vels to normal in about 2 weeks in st men. axiroor m with prostaten women or aoor breast cancer.8 women, especiallthose who are or who may become pregnant axiroor m with prostaten women or aoor breast cancer.8 and children should avoid contact where axiron is applied as unexpected signs of puberty in chiren or changes in body hair or increased acnein women. report these symptoms to your doctor. te your doctor about all dical conditions and medications. seriouside effectsould include increased sk

of prostate cancer; worsening prostate symptom decreased erm cot; ankle, feet or body swelling; enlargedr painful breas; problems breathi ile sleeping; and blood clots in theegs. common side effects include skin redss or irritation where applied, increased d blood cell count, headache, diarrhea, vomiting, d increase in psa. k your doctor abt the only underarm lot treatment, axiron.

melissa: let's go "off the desk." volvo, swedish power company have create ad new solution for battery life in electric cars the companies create ad track with two power -- see that on there? david: yeah. liz: two power lines at a facility in sweden to charge cars as they drive over the quarter mile road. this will keep cars constantly charged because of steady electric car. so far only one car has been

tested. don't get hysterical. tests are made to test more vehicles. david: that is not a bad idea. just like the buss with electric wires. liz: exactly. david: the president made comments this might be fed chairman ben bernanke's last term. we asked on facebook to see if you thought bernanke has done a good job. jim wrote in on facebook, he has done what he feels right to lessen the impact of the financial crisis. what a diplomatic answer, jim. liz: bob wrote in said seems to me bernanke create ad bubble in the stock market. what does go up must come down. david: time for the top two things to watch. number two will be the fedex earnings after the bell. they are expected to post earnings per share of 4 4 cents and revenue of $11,000,000,044. fedex reported lower year-over-year earnings although the stock has taken off like gangbusters from the first of the year.

liz: get this one. number one thing to watch will be federal reserve statement set to be released. 12:30 p.m. eastern time. fox business will have all of it. peter barnes will be there asking questions. david: we have a lot of -- melissa: i'm melissa francis and here's what's "money" tonight. what do high-priced cars and jewelry have in common? they're soaring demand could be a dire sign ffr the markets. plus, would you buy a failing company just to get its employees? yahoo!'s marisa mayer may be doing that twice. but her so-called aqua hiring could creature moyle at yahoo! we'll tell you why. "who made money today"? a hint, they're seeing nothing but green on their tv sets right now. can't figure it out? keep watching. we'll tell you who it is. even when they say it's not it is always about money.